Shinhan Asset Maturity Matching Fund, Subscription Open Until 27th... 5.4% Example Yield

[Asia Economy Reporter Junho Hwang] Shinhan Asset Management is launching the Shinhan 1.5-Year Maturity Investment-Type Bond Fund No. 1, which invests in high-quality domestic bonds.

The maturity matching fund aligns the fund's maturity with the maturity of the included bonds to eliminate the risk of bond losses due to interest rate fluctuations.

Investing when bond prices are low during a rising interest rate period allows investors to gain higher interest income and also aim for capital gains from future interest rate declines (bond price increases).

According to NICE Credit Rating as of the 17th, the yield on A-rated 3-year bonds is 6.31% (AA- rated bonds yield 5.43%). Bond investment yields have benefited from the 'big step' effect. Shinhan Asset Management estimates the fund's example yield at 5.4%.

The fund also focuses on preventing loss risks. The Shinhan 1.5-Year Maturity Investment-Type Bond Fund No. 1 matches the fund maturity and the maturity of the included bonds at around 1.5 years, fundamentally blocking the possibility of losses caused by bond price declines due to rising interest rates.

Default risk is also low. The fund invests only in bonds rated A- or higher, and more than half of the investments are in bonds rated AA- or higher, which have better credit ratings. There has been no default case among domestic companies rated A- or higher in the past 10 years.

Through the accumulated know-how and systems of Shinhan Asset Management’s Bond Investment Management Headquarters and ESG Credit Research Team, the fund thoroughly selects and invests in corporate bonds with low investment risk.

Kim Kyung-il, Head of Retail Sales at Shinhan Asset Management, said, "As the year-end approaches, customer interest in IRP and personal pensions is increasing, but it is difficult to find investment alternatives other than deposits. The maturity matching fund we are launching offers not only yields exceeding deposit interest rates but also the potential for additional capital gains through bond trading during interest rate stabilization or decline, making it a solid alternative for customers who have managed pension assets mainly in cash and deposit products."

The Shinhan 1.5-Year Maturity Investment-Type Bond Fund No. 1 is being offered until the 27th at Mirae Asset Securities, Samsung Life Insurance, Shinhan Bank, Shinhan Investment Corp., Hana Bank, Hanwha Investment & Securities, KB Kookmin Bank, KB Securities, SC First Bank, and others.

This content was produced with the assistance of AI translation services.